We consider the relationship between paternalism and motives for giving and assess the role of donors’ perceptions of the recipient. We theoretically incorporate the tradeoffs introduced when donors may choose how a donation is realized, cash or in kind (i.e. paternalistically) and design an experiment to examine how differently motivated donors realize their giving. While donors of all types prefer in-kind donations, the extent of paternalism depends on the donor's motivation for giving. Warm-glow givers are significantly less inclined to give paternalistically, supporting a form of warm glow that is independent of perceptions. Our findings pertain to fundraisers and policymakers.
- Warm glow